Toronto Hydro Corporation Releases its 2009 Audited Financial Statements and Related MD&A



    
    -------------------------------------------------------------------------
                         Three Months Ended March 31
                      in millions of dollars, unaudited
    -------------------------------------------------------------------------
                                                               2009     2008
                                                             -------  -------
    Net Income (Loss)                                        $  7.0   $ 22.5
    Net Revenues                                             $125.1   $115.9
    -------------------------------------------------------------------------
    

    TORONTO, May 20 /CNW/ - Toronto Hydro Corporation (the "Corporation")
announced today that it has filed with Canadian security regulators its
financial statements and related MD&A for the three months ended March 31,
2009. Copies may be obtained from the Corporation or accessed through
www.sedar.com.

    
    -   Net income was $7.0 million in 2009 compared with net income of $22.5
        million in 2008.

    -   Net revenues were slightly higher at $125.1 million compared to
        $115.9 million in 2008.
    

    "We suspended our planned capital construction program for a number of
weeks in the first quarter to enable us to address safety issues in parts of
our electricity distribution infrastructure. Our planned 2009 capital program
has resumed and we are confident of meeting our targets by year-end.
Additionally, the current economic downturn is impacting our customers, with
consumption trending about 3 percent lower compared with the same period in
2008", said David O'Brien, President and Chief Executive Officer.

    Financial Highlights

    Net income was $7.0 million in the first quarter of 2009, compared to
$22.5 million for the same period in 2008. The decrease in net income was
primarily due to the recovery of Payment in Lieu of Taxes (PILs) recorded in
2008 following the completion of the 2001 and 2002 PILs audits by the Ministry
of Finance ($22.9 million), lower income from our divested Telecom operations
($1.8 million), higher depreciation expense ($1.8 million), and higher net
interest expense ($1.3 million). These unfavourable variances were partially
offset by higher net revenues ($9.3 million) from higher distribution rates.

    
    -------------------------------------------------------------------------
                             Financial Highlights
                         Three Months ended March 31
                     (in thousands of dollars, unaudited)
    -------------------------------------------------------------------------
                                                                   Variance
                                                                  Favourable/
                                                                     (Un-
                                                 2009       2008  favourable)
    -------------------------------------------------------------------------
    Net Income from continuing operations     $  6,986   $ 20,682   $(13,696)
    -------------------------------------------------------------------------
    Net Revenues                               125,145    115,857      8,605
    -------------------------------------------------------------------------
    Operating Expenses                          59,351     50,746     (8,605)
    -------------------------------------------------------------------------
    Depreciation & Amortization                 40,802     39,026     (1,776)
    -------------------------------------------------------------------------
    Change in fair value of Investments          2,145     (9,427)    11,572
    -------------------------------------------------------------------------
    Income from Discontinued Operations              -      1,810     (1,180)
    -------------------------------------------------------------------------
    Provision for PILs                           2,728    (20,135)   (22,863)
    -------------------------------------------------------------------------
    Net Interest Expense                        17,423     16,111     (1,312)
    -------------------------------------------------------------------------

    About Toronto Hydro

    The Corporation is a holding company which through its wholly-owned
subsidiaries:

    -   Toronto Hydro-Electric System Limited ("LDC") - distributes
        electricity; and

    -   Toronto Hydro Energy Services Inc. ("TH Energy") - provides street
        lighting and expressway lighting services, and energy efficiency
        products and services.
    

    The principal business of the Corporation is the distribution of
electricity by LDC. LDC owns and operates an electricity distribution system
that delivers electricity to approximately 687,000 customers located in the
City of Toronto.





For further information:

For further information: Blair Peberdy, Vice-President, Marketing,
Communications and Public Affairs and Chief Conservation Officer: (416)
542-2515, bpeberdy@torontohydro.com; Pankaj Sardana, VP, Treasurer and
Regulatory Affairs, psardana@torontohydro.com, (416) 542-2707


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